Russia: Gazprom and Statoil sign Sci-tech Cooperation Agreement

The two Shtokman partners to expand cooperation through a sci-tech cooperation program.

Today within the framework of the St. Petersburg International Economic Forum 2010 Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee and Peter Mellbye, Executive Vice President of Statoil signed an Agreement on Scientific and Technical Cooperation.

Pursuant to the Agreement, the parties will in such areas as geological exploration and development of hydrocarbon fields; hydrocarbons production and treatment before transportation; technologies and equipment for the hydrocarbons transportation; environmental protection of the Northern seas and territories; Health, Safety and Environment issues under northern conditions; energy saving; renewable energy sources; gas processing; project management and corporate governance.

According to the document Gazprom and Statoil will compile a Sci-Tech Cooperation Program to be adjusted every 1 to 3 years for the purpose of joint efforts coordination.

Background

Gazprom and Statoil are partners in Phase 1 of the Shtokman gas and condensate field development.

In June 2009, Gazprom and Statoil signed the Memorandum of Understanding. The document provides for joint activities of the companies in the area of exploration, development and production of hydrocarbon resources in northern regions.

Shtokman field

Statoil is a partner in phase 1 of the Shtokman development. Shtokman ranks as one of the world’s largest undeveloped offshore gas fields. Statoil holds 24% interest in Shtokman Development AG where Gazprom (51%) and Total (25%) are the two other partners.

Shtokman Development AG is responsible for planning, financing and constructing the infrastructure necessary for the first phase of the Shtokman development and will own the infrastructure for 25 years from start of commercial production. This includes offshore installations, pipeline to shore and the onshore processing plants for LNG and piped gas.

At present the three Shtokman partners are working closely to firm up the project towards a Final Investment Decision.

Shtokman is an important, strategic project for Statoil. It will become a locomotive for new developments in the Arctic region where Russia and Norway are neighbours, and will further strengthen our relations with Gazprom in particular and Russian oil and gas industry in general. Statoil is making an important contribution to Shtokman becoming a success. Through 40 years of operations on the Norwegian continental shelf Statoil has developed broad expertise in offshore field development in harsh environments, including state-of-the art technologies, experience in complex project management and Statoil’s ability to cooperate with partners, suppliers and local communities for the mutual benefit.

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Source: Statoil, June 21, 2010: